On Friday morning even before Reliance Industries declared its results we informed you that it is going to be good results.

In fact we found this on the basis of market manipulation after the market hours Reliance beat street estimates by reporting PAT of Rs 5502 crore for the third quarter. This is a 24% rise in profit over the same quarter last year. Today RIL may go down as a profit booking is expected after a sharp up move.

The market is moving higher and higher as the FII inflows continue to shop Indian equities. As long as the Government continues its reforms, the FIIs would pump in more money into Indian equities. Foreign institutional investors have purchased shares worth Rs 12779.60 crore in January 2013 so far. FIIs bought shares worth Rs 25087.80 crore in December 2012. FIIs bought shares worth net Rs 128359.80 crore in calendar 2012.

The government’s decision to defer GAAR provided the right chemistry for the market early last week. Moreover, strong corporate earnings reported so far are fuelling the market for further up move. The RBI is also expected to by inducing the rate cut. We expect markets to take cues from international market but Nifty is expected to trade above 5950 levels.

What to expect from the market now?

Highest Put OI is at 5900 and Call OI at 6200.Huge put writing is seen at 6000 strike which makes it a very good support. We expect nifty to trade in 6000-6100 in the short term.